How To Open Monthly Income Scheme Account? Check Interest Rates, Eligibility, Key Facts

If you seek to secure a stable monthly income without taking any risk, you may opt for a post office monthly income scheme. By parking your money at this post office saving scheme, you are eligible to earn a 6​.6​ per annum interest rate, which is payable every month. 

Who Can Open Post Office Monthly Income Scheme?

Any individual above 18 years can open a single account of the post office monthly income scheme. Up to three adults are allowed for a joint account. A guardian on behalf of a minor or person of unsound mind can open an account. A minor above 10 years can open an account in his name. 

How To Open Post Office Monthly Income Scheme Account?

• You need to open a savings account in the post office if you don’t have it.  

• After that, you need to fill a Monthly Income Scheme application form in the Post Office.

• Together with the form, you need to submit a Xerox copy of residential proofs, two passport-size photos, and your ID.

• Signatures of witnesses and nominees are required.

• The first deposit needs to be done via cash or cheque.

Post office Monthly Income Scheme – Interest, Investment

An interest rate of 6.6 percent per annum payable on completion of a month from the date of opening and so on till maturity. However, if the interest payable every month is not claimed by the account holder, such interest will not earn any additional interest.

For a single account, the maximum investment limit is Rs 4.5 lakh and Rs 9 lakh for a joint account. You cannot withdraw the deposit before the expiry of 1 year from the date of deposit.

If the account is closed after 1 year and before 3 years from the date of account opening, it will deduct a deduction equal to 2 percent from the principal. After that, the post office will pay the remaining amount.

If the account is closed after 3 years and 5 years from the date of account opening, it will deduct a deduction equal to 1 percent from the principal will be removed and pay the remaining amount.